Question

What are the factors affecting the location of industry ? And explain each .

Answer 1

Raw Materials

1) Materials that are important to the business must be located near the source

2) Wherever ore is, the copper mining plant must be nearby.

3) Eg: A potato processing plant must be close to a potato farm (P.E.I)

Markets

1) A company that is close to the consumer population.

   - REduces Costs

   -Ensures rapid delivery

2) A Company will not locate near it's markets in two cases

   - When the market spans over a large area

   - Laction is more important

Availability Of Fresh Water And Power

- Large factories need a good source of water for the manufacturing process

- Steel factories need large amounts of water for the cooling process

- Aluminum needs large amounts of electricity to be fabricated, and therefore must be near a good source

Labour Supply

1) Highly skilled workers are important (near universities and colleges)

2) Availability and cost are important  

3) Low cost labour  

4) Developing nations have taken away cheap labour

Transportation

1) An efficient transportation service is vital to get the product to the consumer (eg. Rail, Water, Road)

2) Ships are cheaper and more efficient for bulk industries.

Governement

1) Direct - Government encourages investment by offering advantages

   -Low taxes, cheap land

2) Indirect - improving infrastructure that will attract businesses

   - eg. a new fast highway for a business to be located

Circumstances

1) Less easy to measure than the other factors.

2) Depends on the entrepreneur or whoever puts the idea into practice

Answer 2

Answer:

1. Raw Materials:

The significance of raw materials in manufacturing industry is so fundamental that it needs no emphasising. Indeed, the location of industrial enterprises is sometimes determined simply by location of the raw materials. Modem industry is so complex that a wide range of raw materials is necessary for its growth.

2. Power:

Regular supply of power is a pre-requisite for the localisation of industries. Coal, mineral oil and hydro-electricity are the three important conventional sources of power. Most of the industries tend to concentrate at the source of power.

3. Labour:

No one can deny that the prior existence of a labour force is attractive to industry unless there are strong reasons to the contrary. Labour supply is important in two respects (a) workers in large numbers are often required; (b) people with skill or technical expertise are needed. Estall and Buchanan showed in 1961 that labour costs can vary between 62 per cent in clothing and related industries to 29 per cent in the chemical industry; in the fabricated metal products industries they work out at 43 per cent.

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